How does the bargaining power of customers affect the strategy of

The bargaining power of customers can significantly affect the strategy of social networking platforms. Customers hold high bargaining leverage in this space, which means platforms must prioritize providing a satisfying user experience to gain and retain their customer base. This can involve ensuring personal data safety, combating fake news and trolling, and continually innovating to meet user needs and expectations. If customers are not satisfied, they can easily switch to another platform, which can lead to a decrease in user base and advertising revenue for the platform.

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Competitive Rivalry Within The Industry – many industry players from full-featured platforms, such as Google+ to niche social networking sites and new mobile apps can affect Facebook's user base growth. Also, as the social networking space is prone to innovation and the introduction of new tech, Facebook's massive user base can never be taken for granted. Plus, companies that allow marketers with targeted advertising and new development platforms for application developers should be considered competition as well. Bargaining Power of Customers – providing a satisfying user experience is key for gaining and retaining customer base on social networking platforms because while users of social networking platforms hold high bargaining leverage, the same is limited for marketers (personal data safety, fake news and trolling has been hurting the platform user experience the most in the recent years). Threat of New Entrants – with mobile landscape rapidly evolving, new players will be enterin...

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Porter's Five Forces Analysis

Competition management is at the core of strategy formulation and an understanding of the underlying sources of competitive pressure provides the grou...

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